About LIC shares

We have two classes of shares — co-operative control shares and investment shares. All qualifying LIC customers must buy co-operative control shares. They can also buy investment shares.

We have two kinds of shares:

  1. Co-operative control shares  —  compulsory for all qualifying farmers.
  2. Investment shares — can only be bought by holders of co-operative control shares.

Have a nominal value of $1 and are compulsory for all farmers who meet the following criteria: 

  • farm dairy cows in New Zealand
  • sell milk to a New Zealand milk processor
  • have an LIC participant code
  • and buy at least $500 worth of qualifying LIC products and services in a year. 

Qualifying products and services include:

See page 7 of the LIC Constitution for a full list of qualifying products and services.

Shareholding equivalent to 4% of your annual spend

The number of co-operative control shares you must hold is equivalent to 4% of your total annual LIC spend. If you spend $6250 on qualifying LIC products and services in a year, for example, you must hold 250 co-operative control shares.

We review the number of shares you hold in July each year and adjust the amount up or down depending on how much you spent in the previous 12 months. We’ll bill your LIC account for any additional shares or credit your account if your shareholding goes down.

Voting rights for co-operative control shareholders

Co-operative control shareholders are eligible to vote for the Board of Directors, the  Shareholders Council and the Honoraria Committee. They can also vote on resolutions at the Annual Meeting.

Surrendering your shares

You can voluntarily surrender your co-operative control shares before the end of the season if you no longer qualify to hold them. This must be approved by the Board. We’ll reimburse you for the shares using a nominated bank account.

We will compulsorily redeem your shares if you no longer qualify for them at the time of the July annual share registry update. We’ll reimburse you for the shares by giving you a credit on your LIC account.

Co-operative Control Share Redemption Form

Transferring shares to a related party

You cannot sell your co-operative control shares or buy more than you are entitled to, but you can transfer them, together with your LIC participant code and your investment shares, to a related party. A related party is a person or an entity you have a relationship with. Related parties include family members. They can also include trusts, companies and partnerships.

If you change the form of your farming entity, you can transfer your LIC shares and participant code to the new entity. 

Use the Related Parties Transfer Form to make the transfer.  

Related Parties Transfer Form

Can only be bought by holders of co-operative control shares. You can buy up to 5% of the total pool of investment shares at the current market rate.

There are four ways to buy and sell investment shares:

  1. Through a broker.
  2. As a private off-market transfer with another LIC shareholder.
  3. Through the Dividend Reinvestment Plan — use the dividends from both co-operative control shares and investment shares to buy more investment shares.
  4. Through the Voluntary Investment Scheme —  buy investment shares each year by contributing 4% of your qualifying annual spend (based on the same calculation as Co-op shares) to purchase more investment shares.

See Shareholder schemes and forms for more information about how to transfer investment shares to another shareholder, and how to sign up for the Dividend Reinvestment Plan and the Voluntary Investment Scheme. 

Investment Share Transfer Form

Dividend Reinvestment Plan (DRP) Application Form 

Dividend Reinvestment Plan (DRP) Offer Document 

Voluntary Investment Scheme (VIS) Debit Authority Form 

Voluntary Investment Scheme (VIS) Rules Document 

Keeping investment shares after you stop being an LIC customer

You can keep your investment shares for up to two years after you have voluntarily surrendered your co-operative control shares or we have compulsorily redeemed them. You can sell investment shares through a broker or sell them privately through an off-market transfer using the Investment Share Transfer Form.

After two years we will compulsorily trade the shares on your behalf.

If you hold only investment shares you can’t vote for the Board of Directors or the Shareholders Council and you can’t vote on resolutions at the Annual Meeting.

Investment Share Transfer Form

The Board of Directors declares any dividends from co-operative control shares and investment shares in July each year. 

Your dividend is based on your shareholding on the first Friday in August. We’ll pay the dividend two weeks later.

You can get the dividend in three ways:

  • into  your bank account
  • as a credit to your LIC account
  • as a credit to your Dividend Reinvestment Plan so you can buy more investment shares.

The LIC share register is managed by Link Market Services Ltd (LINK)

Once you become a co-operative control shareholder (usually after your first year as an LIC customer), LINK will issue you with a FIN (Faster Identification Number) and a CSN (Common Shareholder Number) or Registration number.

You or your accountant can get access to information about your LIC shares through the LINK website.

Call our Share Registry Team on 0800 542 742 or email shareregistry@lic.co.nz if you have any questions about your LIC shares.